Which of the Following Is a Similarity Between a Merger

question 92

Multiple Choice

Which of the following is a similarity between a merger and a share exchange?

• A) Both involve the splitting of a single company into multiple smaller companies.
• B) Both require the complete absorption of one company and the sacrifice of its legal existence.
• C) Both involve the continued legal existence of every company involved in the processes.
• D) Both require the recommendation of the board of directors of the companies involved.

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Definitions:

Entity

Any organization, institution, or being that has a distinct existence, legally recognized as capable of rights and duties.

Profit

The financial gain achieved when the revenues earned from business activities exceed the expenses, costs, and taxes needed to sustain the activity.

Personally Liable

The state of being legally responsible for one's actions on an individual basis, which can result in personal financial liability.

Partnership

A form of business conduct legally established among at least two partners with shared responsibilities and profit distribution.